Corporate Social Responsibility

Question 1

When does CSR exist?

Answer 1

CSR exists when a business builds a concern for the protection of the environment and of the good of society into its operations.

A business can develop a CSR programme by:
Recycling as much as waste as possible or reducing the amount of pollution it emits.
Contributing to a charity fundraising event (HBF Run for a Reason) or sponsoring disadvantaged groups (concern for the community)

Question 2

Advantages of Implementing a Program of CSR

Answer 2

Community respect and reputation
A business that has a reputation of acting with concern for the environment and for the welfare of the community is likely to be respected by the public, this is turn may generate higher sales a people are keen to purchase goods from a business with an environmental conscious.

More enthusiastic and better motivated employees
The morale of employees of a business that has a reputation for activing in a socially responsible manner is likely to be high and this may lead to a high level of work motivation.

A greater ability to recruit high quality employees
A business that has a reputation for responsible conduct may be able to attract a large number of quality job candidates than other businesses.

Question 3

Cost to a business of CSR

Answer 3

The costs of a business acting to protect the environment may include higher operating costs and the need to purchase new energy saving or pollution reducing plant and equipment.
Costs of sponsoring community events can be quite high.